TCO: An Achilles Heel of Hand-Built Data Warehouses

1 April 8, 2023© Kalido I Kalido Confidential I April 8, 2023

TCO: An Achilles Heel of Hand-Built Data Warehouses


Three Data Warehousing Achilles Heels

Time-to-Value

Time-to-Respond to Change

Total Cost of Ownership


High TCO Is A Cause/Effect Outcome

Lengthy implementation cycle

Built on 1-2 year old requirements and obsolete the day it goes live

Time-to-adapt to change is just as cumbersome as the initial implementation

“The business changes its mind too quickly for IT to keep up.”

n= 544 responses from 430 companies

“The Gap”


Drivers Of High TCO

People costs are not reduced over time

Lack of automation means hand coding changes as occur

Frequency of changes drives higher costs in a hand-built warehouse

Under 100K $100-249K $250-499K $500-999K Over $1M

77

110

135

68

137

“How much do you spend annually to support the data warehouse?”

n= 527 responses

n= 546 responses 430 companies

“How much did you spend on ETL tools to support you B.I. or data warehouse project?”

• Nearly 50% spent over $500K

• Nearly 40% spent over $1M 2012 online poll


Two Ways You And We Drive TCO Down


Delivering A Better Outcome


Business requirements that change?

“That does not keep me up at night”

Nik Green

Preparing Your Organization for BI Automation

Kalido Summer Series: Find Hidden Costs in Your Business Before They

Find You

Framing the Conversation & The Power of Relativity

“…humans rarely choose things in absolute terms. We don’t have an internal value meter that tells us how much things are worth. Rather, we focus on the relative advantage of one thing over another, and estimate value accordingly.” – Predictably Irrational, Dan Ariely

Which one of these circles is bigger than the other?

What constitutes art is relative…

especially when your kid is the artist

Nik: “Do you have slowly-changing dimensions?”Local DW Guru: “What’s that?”

YOU DON’T HAVE A DATA WAREHOUSE!!!

Nik: “How do you handle surrogate key management?”Local DW Guru: “Why would I use surrogate keys?”

Nik: “How do you manage referential integrity?”Local DW Guru: “The database handles it.”

Nik: “How many subject areas do you manage?”Local DW Guru: “One.”

Nik: “Are your dimensions conformed?”Local DW Guru: “Heh?”

A Data Warehouse Is Not a Relative Concept

“I don’t mean Data Warehouse the way you do.”

Offering to automate what I don’t do today or even understand is a silly proposition.

We Have to Baseline Our Organizations on a Definition

“Can I go see it, the Data Warehouse?”

“Teradata, our Data Warehouse…”

“Nik, I know you’re going to get mad, but we should just…”

“You know, Data Warehouse, a big database”

Modeling

Star and Snowflake Schema

Physical Schema Management

Slowly Changing Dimensions

Data Mart and Aggregates

Data Load and Index Management

Rollup Path Awareness

Incremental Summary Generation

Convert Existing Logical Models

Name & Label Management

Release to Production

Version Management

Object Level Change Management

Model Migration

Generic Export/Import for Data Migration

Model Comparison Report

Object Level Dependency for Migration Versions

Testing

Built-in Integrity Checking

Aggregate Task Results

Excel Integration for User Reconciliation

Data rollback and Batch Reload

User Interface for Data BrowsingOperations

Task Execution & Monitoring

Deployment & Migration

Audit and Logging

Process Automation

Archiving

Job Definition with Dependency

Data Integration

Data Sourcing and Field Mapping

Data Detection

Data Validation

Code Management and Lookup

Suspense and Exception Handling

Currency and Units of Measure

System Key Management Post Processing Housekeeping

BI DeliveryNative XLS Pivot Table

Generation

Metadata Management

Report-Time Formula Management

These capabilities enable building a scalable Business

Intelligence platform.

Imagine extolling the value of a snow blower to him…

Now try him…

Business Engagement10%

Logical Modeling20%

Physical Modeling40%

BI Metadata Development

15%

Mapping15%

Model Distribution of Effort

Model Distribution of Effort

Business Engagement10%

Logical Modeling20%

Physical Modeling40%

BI Metadata Development

15%

Mapping15%

55% Effort Reduction

55% Effort Reduction

…humans have consistently demonstrated an ability to find new things to do that are of greater value when jobs have been outsourced or automated.

– Philip Rosedale (Creator of Second Life),Abundance

Business Engagement55%Logical Modeling

30%

Mapping15%

Reinvest this time in engaging the business and building a better model.

Shifting Your TalentBusinessAcumen

Communication

ETL SQL

DimensionalModeling Data

AnalysisRDBMS

BusinessAcumen

Communication

ETL SQL

DimensionalModeling Data

Analysis

RDBMS

• Frame the conversation…make sure everyone is talking about the same thing.

• Reinvest your time-savings in developing a better solution.

• Re-tool your people.

© 2013 Kalido I Kalido Confidential I April 8, 202323

Thank You!

Is a relatively high Total Cost of Ownership still an expected consequence of an Enterprise Data Warehouse?

TCO Summer Webinar Series

Cost Per Release Cycle – 7/19

Automation to Reduce Operating Costs – 7/23

Reduce Tool Cost – 7/30

Scale Drives Cost Reductions – 8/6

Technology

TCO: An Achilles Heel of Hand-Built Data Warehouses